• 3.38% five year fixed rate at 75% LTV now best in market
• New 2.73% two year fixed rate at 65% - best in market with fee under £1000
• New range of fee-free or reduced fee packages, some with £300 cashback

The Post Officeis cutting its mortgage rates by up to 1.01% on a range of its fixed rate and tracker mortgages, expanding its offering to those with larger deposits, whilst maintaining a range for first time buyers.  Products are available immediately.

The largest cut is to its five year fixed rate deal at 75% LTV – a reduction of 1.01% from 4.39% to 3.38%, making it best in market with a £995 fee. New 65% LTV two and three year fixed rates with £995 fees also top the Best Buy tables.  These three products are the lowest fixed rates ever offered by the Post Office.

Post Office has expanded its range of fee-assisted products to help reduce the upfront costs involved with buying a property or switching an existing mortgage. Many deals have no arrangement or booking fees, offer £300 cashback, and can include free standard legal work and a standard valuation. 

Ten of the Post Office’s mortgages are now Best Buys:

Two year fixed rate (with £995 fee) at 2.73% (65% LTV – best in market)

• Two year fixed rate (with £995 fee) at 2.85% (75% LTV)
• Two year fixed rate (with £995 fee) at 3.29% (80% LTV)
• Three year fixed rate (with £995 fee) at 2.95% (65% LTV – best in market)
• Three year fixed rate (with £995 fee) at 2.99% (75% LTV – best in market)
• Three year fixed rate (with £995 fee) at 3.69% (80% LTV)
• Three year fixed rate (with £995 fee) at 3.89% (85% LTV
• Three year fixed rate (with £995 fee) at 4.89% (90% LTV)
• Five year fixed rate (with £995 fee) at 3.38% (75% LTV – best in market)
• Two year tracker (with £995 fee) at 3.19% (80% LTV)

The Post Office is committed to offering first time buyers, movers, and remortgage customers a wide range of choice and flexibility, with deals from 65% up to 90% LTV. 

Mike Cook, Head of Post Office Mortgages said: “We’re really pleased to be able to expand our range and offer some very low rates across our fixed rate and tracker mortgages for those with varying deposits. The Post Office mortgage book has grown significantly since launch and we’re now looking to expand our business to a wider range of customers.

“Our new mortgage range offers several Best Buy rates, and with a new selection of fee-assisted products we are able to help people avoid the up-front costs that can be so restrictive when looking to re-mortgage or move home. Some have no arrangement, standard valuation or standard legal fees, or include £300 cashback.  Moneyfacts’ data shows the average borrower’s SVR is currently 4.80%, so our new range can offer significant savings over the life of a mortgage.”

Customers can pick up information about the new mortgage range and rates online at www.postoffice.co.uk/mortgagesor from any one of the 11,800 Post Offices branches across the UK.  Dedicated staff are available at over 300 larger branches to help customers with mortgage enquiries.

Customers can also arrange a call-back from a mortgage specialist at the call centre, via all branches, or call the Post Office directly on 0800 077 8033.

Ends

For more information, please contact:

Stuart Taylor           Post Office Press Office        029 20392572

stuart.taylor@postoffice.co.uk

Notes to Editors:

FULL DETAILS OF ALL MORTGAGES AVAILABLE

Note: competitive ranking based on Moneyfacts data tables on 25/1/2012